ExxonMobil puts giant platform at centre of Vietnam project

ExxonMobil is facing a technological challenge at its Ca Voi Xanh (Blue Whale) offshore gas project in Vietnam where a giant fixed offshore platform has been designed to sit in a water depth where floating structures are usually preferred.

The development concept for Blue Whale consists of the fixed offshore platform, gas and condensate subsea pipelines, an onshore gas treatment plant, onshore pipelines and condensate offloading facilities.

Vietnam-based contracting sources said the fixed platform will be huge, weighing up to 45,000 tonnes including topsides and the steel jacket.

The water depth of 300 metres would usually be too deep for a steel jacket, with a floating platform ordinarily likely to be installed at such depths.

However, Vietnam-based sources said the front-end engineering and design contractor Saipem had designed the platform to be installed by the floatover method — if the project proceeds under ExxonMobil’s ownership.

It has been reported that the US supermajor is open to offers for its interest in the project.

In the meantime, bidding for the next phase of field development activity has been postponed until next year, said contracting sources.

ExxonMobil’s current activities in Vietnam run counter to a supposed interest in divesting its 64% interest in Blue Whale.

In the past week, the port city of Hai Phong approved a plan by ExxonMobil to build a large liquefied natural gas-to-electricity project, using imported LNG to generate 4500 megawatts of power at a capital cost of $5 billion.

This project is not connected to Blue Whale, said Vietnam sources.

ExxonMobil has said previously that Blue Whale is “a potential domestic gas-to-power project that will provide secure and competitive energy to fuel the country’s economic growth”.

The Blue Whale field is located in Block 118 in the Phu Khanh basin about 80 kilometres off Vietnam’s central coast.

ExxonMobil has previously said gross production of 580 million cubic feet per day of gas and 3000 barrels per day of condensate can be achieved.

It is understood the gas will be used to generate electricity at two power plants at Chu Lai in Quang Nam province and two plants at Dung Quat in Quang Ngai province.

The power plants will have a combined capacity of 3000MW.

ExxonMobil and its joint venture partners PetroVietnam and PetroVietnam Exploration & Production already have certain major commercial deals in place including a project framework heads of agreement and a gas sales heads of agreement.

Saipem was hired for the offshore and onshore FEED work, with its XSight division completing the work earlier this year.

Mauro Piasere, chief operating officer of Saipem XSight, said at the time of the FEED award the Ca Voi Xanh development project would provide a competitive and cleaner energy source to Vietnam.

The Blue Whale field is located well inside Vietnam’s exclusive economic zone, but China lays claim to a part of Block 118, according to local reports.